Thryv Holdings Inc (THRY)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -259,295 | 54,348 | 101,577 | 149,221 | 35,504 |
| Total stockholders’ equity | US$ in thousands | 152,700 | 382,267 | 314,715 | 196,775 | 27,260 |
| ROE | -169.81% | 14.22% | 32.28% | 75.83% | 130.24% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-259,295K ÷ $152,700K
= -169.81%
Thryv Holdings Inc's return on equity (ROE) has displayed significant variability over the past four years. In 2020, the ROE stood at a relatively high level of 75.83%, indicating that the company generated substantial profits relative to its shareholder equity. This suggests efficient utilization of equity to generate returns for investors.
However, the ROE notably decreased in the following years, with a sharp decline to 32.28% in 2021 and a further significant decrease to 14.22% in 2022. These decreasing trends may signal a decline in the company's ability to generate profits from its equity base. The negative ROE of -169.81% in 2023 is a cause for concern as it indicates that the company incurred a net loss, potentially eroding shareholder value.
The significant fluctuations in ROE over the years may be attributed to various factors such as changes in profitability, asset utilization, financial leverage, or management effectiveness. The negative ROE in 2023 may warrant further investigation into the reasons behind the substantial loss incurred by the company.
In conclusion, Thryv Holdings Inc's ROE performance has been volatile, with a notable decline in recent years and a concerning negative ROE in 2023. Further analysis of the company's financials and operations is recommended to fully understand the factors driving these fluctuations.